Binance SOL Staking allows you to:
Stake your SOL tokens on Binance for BNSOL, a Liquid Staking Token (LST). BNSOL can be used to trade, lend, or provide liquidity, while still earning staking rewards.
In simple terms, Binance SOL Staking unlocks the liquidity of your staked SOL tokens. BNSOL earns staking rewards through the BNSOL:SOL conversion rate, even when used in other products on Binance or externally on DeFi protocols.
Let's take a deeper look at each of the key concepts related to staking, rewards, redemptions, and withdrawals when using Binance SOL Staking.
1SOL betting position
When you stake SOL, you will receive BNSOL, a tokenized representation of the SOL you staked, in your Spot Wallet. The amount of BNSOL you receive is determined by the BNSOL:SOL conversion ratio displayed on the SOL stake page on Binance.
2-BNSOL Value and Rewards
Each BNSOL represents 1 SOL staked plus accumulated stake rewards since 2024-08-26, 06:04:38 (UTC) in epoch 661 on the Solana network. Over time, as SOL stake rewards accumulate, the value of 1 BNSOL gradually exceeds the value of 1 SOL.
The ratio is updated every Solana Era (about 2 days) to reflect the rewards accumulated via the BNSOL:SOL conversion ratio.
3-Recovery
You can exchange BNSOL for SOL based on the current conversion ratio BNSOL:SOL at the time of redemption.
Please note that there may be processing restrictions and a waiting period of approximately 4 days between submitting a refund request and receiving the refunded SOL.
4-BNSOL pull to external platforms
BNSOL will continue to earn staking rewards even when used in other Binance products or external DeFi applications. You can withdraw BNSOL to another wallet, such as the Binance Web3 Wallet, through the typical process of withdrawing digital assets from your Binance account.
Let's take a quick look at how the process works:
1-Put your SOL and find BNSOL tokens in your Binance Spot Wallet.
2-Create your Binance Web3 wallet and backup it if you haven't already.
3-Click [Transfer] in your Binance Web3 Wallet to transfer BNSOL to the wallet.
4- Head to [Discover] to find your favorite dApp to start using your BNSOL.
*What are the benefits of using Binance SOL Staking?
1. Open liquidity
Binance SOL Staking allows you to stake your SOL tokens and receive BNSOL, a liquid staking token. Unlike native staking on the Solana network where your assets are locked, BNSOL allows you to use your staked assets to trade, lend, or provide liquidity, while still earning staking rewards. This flexibility is often not available with native staking.
2. Earn participation rewards
BNSOL increases in value compared to SOL as staking rewards accumulate. Native staking on Solana and Binance Earn’s SOL Locked products require you to lock your tokens for a set period, limiting your ability to access your reward value immediately.
3. Flexible recovery
Binance SOL Staking offers a flexible exit policy. You can follow the following:
1- Exchange your BNSOL for SOL whenever you need to by selling it on the spot market, giving you easy access to the assets you have bet on.
2- Unlock your BNSOL at the specified conversion ratio on the Binance SOL Staking page (when active) and wait for the redemption waiting period
4. Diverse benefit
BNSOL will be available for use and supported across various Binance products and DeFi protocols in the near future, allowing you to maximize the utility of the SOL you have deposited. For example, you may want to use your BNSOL to:
*Staking on DeFi protocols, where you can participate in liquidity farming, lending, borrowing, re-staking, and more activities.
*Trading on the Binance Spot Market and using it as collateral in margin and futures trading. Note that these features will not be available until a later release.
*Borrowing using tokens as an effective collateral for crypto loans. This strategy can greatly enhance capital efficiency and allow you to earn SOL staking rewards and borrow funds for other strategies at the same time.
*Enhancing the liquidity of betting assets, reducing the opportunity cost of the original bet, and providing a significant advantage in terms of capital efficiency.
5. One click betting
The process is straightforward and easy to use. With just one click, you can bet your SOL and start earning rewards, making it accessible to beginners.
6. Trusted platform
Binance is a trusted and globally recognized platform with a strong reputation for security and reliability. When you stake your SOL on Binance, you benefit from the platform’s robust security measures and customer support.
7. Security
Binance built its Solana Staking product using the native Stake Pool software managed by Solana Labs, a robust framework that has been audited by multiple security firms to ensure the safety of funds. This Stake Pool software has also been thoroughly validated by multiple LST providers, further enhancing its reliability and security.
What are the differences between Binance SOL Staking, Earn Locked Products, and Solana Native Staking?
To see if Binance SOL Staking is a right product for you, we've listed the differences compared to two other popular options: Binance Earn Locked Products and Solana Native Staking.
How can I participate in Binance SOL Staking?
*Our users will be able to participate in Binance SOL Staking in just three simple steps:
*Stake SOL: Stake SOL and get
BNSOL
As a symbolic representation of the SOL you bet on.
*Earn SOL: Collect SOL staking rewards by holding BNSOL.
*SOL Redemption Flexibility: Redeem BNSOL for SOL at the specified conversion rate.
To make sure you are ready to launch Binance SOL Staking, head over to the platform to purchase SOL and get ready to stake!
https://www.binance.com/en/trade/SOL_USDT?type=spot
Stay tuned for Binance SOL Staking launching in September
It won’t be long before our community can soon enjoy the benefits outlined above with our new Liquid Staking product. Be sure to look out for more information and announcements coming soon as we get closer to launch day!
Reference links:
https://academy.binance.com/en/articles/what-is-solana-sol
https://academy.binance.com/en/articles/what-is-liquid-staking
